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2 0 0 6 A N N UA L R E P O R T
FINA NCI A L HIGHLIGHTS
For the Years Ended September 30
(Dollars in thousands, except per share data) 2006 2005 2004 2003 2002
Selected Financial Condition Data:
Total assets $ 2,841,337 $ 2,598,323 $1,826,856 $ 1,174,305 $ 1,027,701
Loans, net 1,453,185 1,341,026 980,986 703,555 661,012
Securities 1,012,716 893,901 603,375 374,259 292,937
Deposits 1,729,659 1,726,401 1,239,532 869,553 799,626
Borrowings 682,739 442,203 214,909 164,757 102,968
Equity 405,286 395,157 349,512 117,857 110,867
Selected Operating Data:
Net interest income $ 84,757 $ 86,771 $ 61,964 $ 46,322 $ 43,088
Provision for loan losses 1,200 750 800 900 900
Non-interest income 17,152 17,007 11,135 8,963 5,063
Non-interest expense (1) 71,256 70,582 56,146 36,790 32,161
Income tax expense 9,258 11,204 5,136 6,344 5,563
Net income $ 20,195 $ 21,242 $ 11,017 $ 11,251 $ 9,527
Selected Financial Ratios and Other Data:
Return on assets .75% .84% .69% 1.04% .99%
Return on equity 5.15 5.16 3.94 9.92 8.92
Net interest margin 3.68 3.98 4.34 4.61 4.75
Allowance for loan losses to non-performing loans 405.51 1,282.57 608.26 227.76 205.63
Equity to total assets 14.26 15.21 19.14 10.04 10.79
Diluted earnings per share $ .49 $ .49 $ .29 $ .32 $ .27
Dividends per share .20 .17 .15 .13 .09
Closing market price per share 13.68 11.67 11.74 9.48 6.42
(1) Includes $5.0 million for the establishment of the Provident Bank Charitable Foundation in 2004, equal to $0.08 per share, and merger integration expenses of
$1,124,000, $773,000 and $531,000 in 2005, 2004 and 2002, respectively.
ABOUT PROVIDENT BANK
Provident Bank, an independent, full-service community bank founded in 1888, is the banking subsidiary of Provident New York Bancorp,
headquartered in Montebello, New York. With $2.8 billion in assets and almost 600 employees, we operate 33 branches that serve the
Hudson Valley region. Our franchise includes 32 branches located in Rockland, Orange, Sullivan, Ulster and Putnam Counties in New York,
and one branch in Bergen County, New Jersey that operates under the name Towncenter Bank, a division of Provident Bank, New York.
We also offer deposit services to municipalities located in the State of New York through Provident Bank’s wholly-owned subsidiary,
Provident Municipal Bank, and investment advisory services through our affiliate, Hudson Valley Investment Advisors LLC. Our title insurance
affiliate Hardenburgh Abstract Company of Orange County, Inc. is located in Goshen, New York. Provident Bank offers a complete line of
commercial, community business and retail banking products and services.
Provident New York Bancorp’s common stock is listed on the NASDAQ National Market under the symbol “PBNY.”
Total Assets (Millions) Revenue Diversification (In Percent)
Our total assets $2,841.0 $3,000 Through our revenue enhancement efforts,
increased 9.3% in non-interest income continues to represent a
fiscal 2006, and 2,500 growing percentage of our total income.
increased 176%
over the past 2,000
five years. 83.2%
1,500 Net Interest
Income
1,000
500 16.8%
Non-Interest
0 Income
’02 ’03 ’04 ’05 ’06
Diversified Loan Portfolio (In Percent) Core Deposit Base (In Percent)
Our strength in commercial and community Our core deposit base remains strong, with
business lending, representing more than half transaction and savings accounts representing
of our lending, can be seen in our diversified 52% of our total deposits.
loan portfolio.
22%
31.4% 35.9% Savings 34%
1– 4 Family Commercial Certificates
Real Estate
15%
Commercial
Checking
6.6%
15.2% Construction 15%
Consumer 10.9% 14% Retail Checking
Commercial MMDA
Business
PROVIDENT NEW YORK BANCORP 2006 Annual Report 1
TO OUR STOCK HOLDERS:
In 2006, we experienced an accelerating momentum.
We continued to build on our foundation as we grew and With our consistent approach, we were pleased that by
strengthened our franchise. Having fully integrated three banks year-end, stockholders were rewarded with an additional $80
acquired in recent years with our sales and service platform, we million in stockholder value through a 15% increase in market
moved well beyond an operational merger to a cultural one. capitalization.
In addition, we achieved solid business results, strengthened
BUILT AROUND OUR CUSTOMERS
our balance sheet, and positioned our interest rate profile for
As a full-service community bank with $2.8 billion in assets
long-term growth.
and almost 600 employees, Provident Bank holds the leading
GROWING OUR deposit share in Orange and Rockland Counties combined—
FRANCHISE a vibrant and growing market.
During the fiscal year A reliable and trusted presence for more than a century,
ended September 30, we set ourselves apart from our competition by providing
2006, we grew our loan all the products and services of a big bank, delivered with
base with a significant the flexibility and local knowledge of a community bank—
increase in commercial a consistent approach that continues to yield success.
loans and kept our core The fact is, we know our markets inside and out, and
deposit base strong have designed our services over the years around the specific
through our loyal cus- needs of our individual, commercial, municipal and not-for-
tomer relationships. We profit customers.
maintained our excellent While many banks in our marketplace have exited the
asset quality and grew our non-interest income. While many small business market, Provident Bank is building on it. In addi-
banks have seen reduced earnings per share over the past year tion to being a major commercial lender in our markets with
with the challenges of a flat yield curve environment, we main- local decision making and the most experienced lenders in the
tained our earnings per share—through both business growth Hudson Valley, we have a successful community business pro-
and expense management efforts. gram driven by our highly trained branch managers teamed
We also continued to seek prudent ways to increase our with our community business lenders.
earnings to achieve profitable long-term growth through our Working with the smaller businesses so prevalent in our
banking, investment, insurance and wealth management markets, our branch managers and lenders generated over
services. As an example, in fiscal 2006 we acquired Hudson 1,000 community business loans in fiscal 2006, up 33%. In
Valley Investment Advisors LLC (HVIA), of Goshen, New York. fact, Provident Bank had the number one market share in small
The acquisition broadens our wealth management capabilities business lending in our major markets of Rockland, Orange
and will provide opportunities to expand our customer rela- and Sullivan Counties for calendar year 2005. This market share
tionships and increase our non-interest income. was based on total dollars lent for business purpose loans of
$1 million or less, as reported by banks on their annual lending
reports required by the Community Reinvestment Act.
2
In addition, overall commercial loans grew 10.3% and continue to grow. We also strengthened our robust Enterprise
consumer loans increased 16.5%. Risk Management Program, and are upgrading our network
We also distinguish our services through a level of accessi- systems for enhanced speed, reliability and security.
bility few banks match. We offer seven-day banking, extended While investing for the future, we also closely control our
hours and more branches open on Sunday than any other expenses. In fiscal 2006, we optimized our branch network with
bank in our market, as well as growing Internet Banking and the closure of two branches to avoid service redundancy, and
telephone banking services. we plan to relocate three branches into improved facilities in
higher-traffic customer locations to more effectively serve our
GROWING STRONGER, SERVING BETTER
market. To realize future expense savings, we also revamped
In fiscal 2006, we enhanced momentum across a range of
the bank’s retirement plans to bring them in line with peer
business areas through new programs, process improvement
bank benefits.
and service development.
Because our business is built on growing relationships, not AN ACCELERATING MOMENTUM
just executing transactions, our culture is vital to our success. Throughout fiscal 2006, living our brand values and providing
During the year, we created a new service excellence program services that are unique in our markets led to increased busi-
to ensure consistent high-quality service. We provided extensive ness growth.
training in needs-based relationship sales, enhanced our sales With our franchise concentrated in a region of economic
incentive programs, and developed new employee recognition strength, our focus on expanding our customer relationships,
programs as employees increasingly live our brand values and and our talented employees who bring our brand values to
bring our service-driven culture to our customers. life every day, I believe we are well positioned for continued
In fiscal 2006, we also launched numerous products success. We have continued to invest in our people and infra-
and services to help increase deposits, loans and revenue. We structure to cost-effectively build on our growth, and our bal-
installed a state-of-the-art commercial loan management sys- ance sheet is structured to take advantage of a more normal
tem to expedite processes for our commercial lenders. From yield curve.
an operations perspective, we streamlined policies and proce- Building on our solid foundation, we have created an
dures to make it easier for our customers to bank with us and accelerating momentum, and I am energized and excited by
easier for our bankers to operate more effectively. All of our the opportunities ahead.
efforts were supported by a new advertising campaign that I wish to thank our employees for their hard work
brought our message of access and convenience to a growing and commitment. I also thank our board, management and
customer base and significantly increased awareness of our stockholders for their continued support.
products and services.
After a thorough review of the business advantages, we Sincerely,
leveraged our capabilities, talent and resources in completing
our internal data center in fiscal 2006. By building an internal
data center with sophisticated backup facilities, we are not only
able to manage and control our data more effectively, but expect George Strayton
to reap the benefits of our fixed costs and greater capacity as we President and Chief Executive Officer
PROVIDENT NEW YORK BANCORP 2006 Annual Report 3
Building on Our Core Values
Net Interest Margin (In Percent)
Despite rising
short-term 5% 5
interest rates,
we had a strong 3.68%
4 4
net interest
margin of 3.68%
in fiscal 2006. 3 3
2 2
1 1
0 0
’02 ’03 ’04 ’05 ’06
Dividend Growth (Dollars) Diluted Earnings Per Share (Dollars)
We increased our Earnings per share
dividend each year $0.20 $0.20 0.20 remained unchanged $0.49 $0.50 0.5
since transitioning in fiscal 2006,
to a public company despite new 0.40 0.4
in 1999. 0.15 0.15 accounting for
stock options.
0.30 0.3
0.10 0.10
0.20 0.2
0.05 0.05
0.10 0.1
0 0.00 0 0.0
’02 ’03 ’04 ’05 ’06 ’02 ’03 ’04 ’05 ’06
4
CREATING INVESTOR VALUE
Our diversified investment and loan portfolios enabled us to turn in a solid financial performance in fiscal 2006. By maintaining a
balanced ratio between commercial loans, retail loans and our securities portfolio, the complementary characteristics of each enable
us to deliver steady earnings across a range of economic conditions. Fiscal 2006 was no exception. In the face of a challenging
interest rate environment, we maintained our earnings per share. Our expenses were relatively flat despite an increase in stock-based
compensation expense of $2.9 million, partially due to the impact of new stock option accounting rules. Our cost of funds rose due
to the rapid rise in short-term interest rates, as some customers moved balances from lower-yielding savings and checking accounts
into higher-cost CDs and money market accounts. However, we maintained 80% of our existing savings account balances and our
cost of funds remains low in comparison to peer banks. Our transaction deposit base represented a healthy 30% of total deposits;
passbooks, statement savings and money market accounts comprised 36%. Our asset quality remains strong. Non-performing loans
were 0.34% of total loans at the end of fiscal 2006.
OUR BRAND VALUES members also connect with Provident Bank as they provide us
Community with useful customer insights and marketplace observations,
As an organization and as individuals, we are invested in our foster and enhance the bank’s stature in the community, and
communities. In fiscal 2006, we continued to work to meet the refer new business to us.
needs of every community member through our extensive At Provident Bank, we make it easy for people to connect
employee community involvement, volunteer efforts, and with us for their financial needs. Our goal is to provide outstanding
through the work of the Provident Bank Charitable Foundation, service to our customers—whether they walk in, ring in, or click
which supports a wide range of community-based initiatives. in. Through our extended banking hours, enhanced Customer
With a proud history in the region dating back to 1888, we Contact Center, and robust Internet banking capabilities, we
also know and understand our local community. This knowl- constantly work to make banking at Provident more accessible.
edge has served as the foundation for the way Provident Bank To connect with more customers, we launched an advertising
has grown and adapted to ensure we are meeting the needs campaign in 2006 that included print, cable TV and radio ads
of our local communities—whether through our expertise in tying the needs of our customers to our brand promise and
community business lending, our strength in working with values. Through pre- and post-awareness studies, we found the
not-for-profit organizations, our local market insight or local campaign significantly increased non-customers’ awareness of
decision making. Provident Bank’s products and services and their likelihood of
banking with us in the future. To understand our customers
Connection
better, we enhanced our database marketing platform. The insight
We believe in connecting people with opportunities as we serve
we gain enables us to refine our strategic marketing plans and
our communities and customers. Our Business Leaders Council,
serve our customers more effectively. During the year, we also
composed of a diverse group of respected business and
launched an Intranet site as the central forum for our internal
community leaders across our marketplace, is designed to
company communications.
connect Council members with business opportunities. Council
PROVIDENT NEW YORK BANCORP 2006 Annual Report 5
The Values That Drive Us
Provident Bank is a
leader in our growing
marketplace. Through
our brand values of
community, connection,
consistency, empowerment
and trust, we help our
customers make the most
of whatever opportunities
come their way.
“We’re a community-based not-for-profit
corporation providing health and housing
services to seniors in the Hudson Valley
and beyond. When we wanted to expand
to offer 66 new senior housing units, we
needed a bank that understood the nature
of our facilities, our mission and our
financing requirements. That bank was
Provident Bank. They put in the extra
effort to find a way to satisfy their lending
requirements while making our plans
possible. Other banks didn’t offer that
flexibility.”
Todd Whitney, Chief Financial Officer
Elant, Inc.
6
Consistency Rewards program, our enhanced service excellence program,
We are committed to ensuring that our customers enjoy a our extensive new hire training, or our range of career devel-
positive, consistent experience—no matter how they access opment programs, we continually invest in our people to
our services. Accordingly, we promote brand continuity and recruit, develop and retain our talented employees. Against
consistency through “living the brand” in everything we do. this backdrop, we work to create a level of quality service that
This is the sales and service foundation for all of our marketing sets us apart from other banks.
programs, and our brand values are an integral part of the
Trust
bank’s mission, corporate strategy and business objectives. In
Conducting ourselves with the highest levels of integrity and
fiscal 2006, we continued training around our brand values
honesty to earn the trust of our customers is the way we do
and service excellence, enhanced our Customer Care Center
business every day. Earning the trust of our stockholders is just as
training, and implemented new customer service standards.
important. In fiscal 2006, we strengthened our robust Enterprise
We also completed our re-branded signage program to ensure
Risk Management Program. In addition to our credit risk program
consistency across all of our branches. To continually improve
designed to ensure quality credit under a variety of economic
the customer service experience and ensure consistent quality
conditions, and our market risk program that manages our interest
standards, we expanded our Mystery Shop and Customer Satis-
rate and liquidity risk, we formalized our ongoing operational
faction Surveys. The results are used bank-wide to improve our
risk initiatives with a broad and deep program—one typically
processes and enhance our training efforts. In fiscal 2006, over
found only in banks many times our size. As an enterprise-wide
80% of our customers in our major markets of Rockland and
system of controls and processes, our operational risk program
Orange Counties considered us their primary bank. Customers
identifies and rates risks throughout our operations—from
cited our service, conveniently located branch offices and
possible human error to potential physical disasters—so that
extended banking hours as key advantages over our competitors.
processes can be improved to manage these risks. In addition to
Empowerment the extensive value of management reports, the program has
Empowering the talented people of Provident Bank to do their created an awareness that affects the way all of our managers
best is critical to our success. As our most valued asset, our think about credit, market and operational risk to help mitigate
employees are effectively trained to create an environment that potential problems, add greater certainty to our income stream,
allows them to use their best judgment to effectively meet cus- and ensure our strategic plan stays on course.
tomer needs—a culture that fosters professionalism, honesty
and integrity. Whether it’s our new Employee Recognition and
PROVIDENT NEW YORK BANCORP 2006 Annual Report 7
Our Commitment to Commercial Banking
Total Commercial Loans (Millions) “I’ve been working with Provident Bank
for about 10 years. They’re people who
Comprising 53%
$787.1 are involved in the community—in fact,
of our total loans,
our commercial loan
$800 800
we serve on boards together. They know
portfolio grew 700 700 me well, understand my strengths, and
to $787.1 million. 600 600 I value their advice in my business
500 500
dealings. My company invests in and
400 400
develops properties and they know how
to structure deals that make sense
300 300
for my business. I’d say they’re not
200 200
just business associates—I’d call
100 100
them friends.”
0 0
’02 ’03 ’04 ’05 ’06 Howard Hellman, Hellman Development, LLC
Provident Bank Business Leaders Council Member
8
Providing Value for Businesses Commercial loans
In our local markets, we are known for our commitment to increased 10.3%
commercial lending, our specialized expertise and our local
decision-making capability. We understand our community’s
With our expertise in
business needs, our region’s economy, and provide trusted commercial and industrial
guidance and expertise that enable us to build long-term lending and growth in
customer relationships. commercial mortgages,
our commercial loan port-
In fiscal 2006, we grew our commercial loan portfolio 10.3% folio grew in fiscal 2006.
at a time when peer banks saw decreases, and we increased
our average commercial transaction deposits 9.5%. At the same
time, we maintained our excellent credit quality through our
growing credit analyst teams and our in-depth understanding As a bank that is connected to our communities, we also
of our commercial customers. support not-for-profit organizations through specialized lend-
We believe that a key to our continued success is not only ing and banking services. We take the time to learn about their
our strategic focus on growing our commercial loan portfolio organizations, regulations and funding to provide advice and
through acquisitions and organic growth, but our specialized insight to help these agencies within their own operations. In
expertise in commercial and industrial lending. We continue addition, our lenders serve on many not-for-profit boards, and
to develop and invest in our systems and staff to support the we volunteer our time to help these organizations succeed.
needs of local and regional businesses and entrepreneurs in We also serve local governmental organizations in our
our marketplace. In 2006, we installed a state-of-the-art com- communities through Provident Municipal Bank. We are a
mercial loan management system designed to improve our trusted provider of governmental banking services with a wide
sales and portfolio management capabilities. The new system range of products and services designed to meet the unique
significantly improves recording and control relative to credit needs of municipal organizations.
risk and compliance tracking. During the year, we also hired In addition, our title insurance agency, Hardenburgh Abstract
experienced lenders with local knowledge and reorganized Company, serves commercial and retail customers with high
our lending teams to provide more efficient, consistent local quality service and fast delivery. In fiscal 2006, our title revenue
decision-making and servicing capabilities. increased 9% and has the potential to grow significantly as an
Our commercial deposit base is strongly supported by attractive service to many of our customers.
our popular Online Cash Management services. Online trans-
actions increased 78% in fiscal 2006. As one of the few banks in
our region offering capabilities that include online clearing and
deposited check imaging, and with our highly trained cash
management staff, commercial customers increasingly turned
to Provident Bank to help streamline their financial operations.
PROVIDENT NEW YORK BANCORP 2006 Annual Report 9
Providing Value for Consumers and Community Businesses
A Strong Community Connection
We connect with consumers in our markets by offering a wide array of consumer services, delivered personally to
provide the solutions our customers need. Our “Walk In, Ring In, or Click In” distribution channels demonstrate our
strategic approach of offering convenient, easy access. Our level of accessibility remains unique in our market with
more branches open on Sunday and extended banking hours.
In an increasingly competitive market, our deep knowledge This close partnership enables us to offer our customers a
of our customers and needs-based approach continue to virtually seamless borrowing experience, while generating
serve us well. Our community business loan program other business opportunities. In fiscal 2006, our community
expedites and simplifies loans for small businesses. This is a business loans increased 33%, including lines of credit or
key service differentiator in our markets, which are largely term loans under $400,000 and mortgages under $750,000.
comprised of small businesses. Our branch managers are Provident Bank has a strong commitment to commu-
specifically trained in community business lending and nity businesses. For calendar year 2005, Provident Bank
work as the primary contact with borrowers. They identify had the number one market share in its major markets of
customer needs, understand credit criteria, work in Rockland, Orange and Sullivan Counties, based on total
partnership with our community business lenders, and dollars lent for business purpose loans of $1 million or less.
make referrals to our commercial lenders for larger loans.
10
“My business banked for years with the
former Warwick Savings Bank, and
after the merger, with Provident Bank. Community Business
They made the transition smooth—the Loans grew 33%
continuity has been terrific. Provident
Bank not only offers banking with a Our branch managers
hometown touch, but has much more are the focal point of our
to offer. I count on them for my busi- Community Business
ness banking and financing as well as Lending program and,
my personal banking. We get quick teamed with our lenders,
answers, they’re easy to work with— generated over 1,000
I’m very pleased.” loans in fiscal 2006.
Nick Conklin
C&N Properties of Warwick, LLC
During the year, we also developed cost-effective volume grew 45%. Reflecting the success of our Online Bill
marketing programs to help achieve our deposit, loan and Pay service, the number of active Bill Pay users increased
revenue growth goals. We created bundled product offers by 83%. Research shows that the Online Bill Pay service
and successfully used advertising to help drive consumer boosts customer satisfaction, increases loyalty and pro-
deposits, homeowner loans and lines, and community motes customer retention.
business lending and mortgage products. The popularity of our Business Debit Card helped
With our broad range of services for consumers, drive non-interest income. We launched a range of new
consumer loans grew 16.5%, including home equity lines, products and enhanced others, including our convenient
homeowner loans and personal loans. We successfully cash management product for community businesses.
maintained our mortgage loans despite a slowdown in In fiscal 2006, we continued strong support of our
the residential housing market. Through extensive branch communities through low-income housing programs
training, we significantly increased average sales per and economic development loans. The Provident Bank
employee per day. Charitable Foundation also supported numerous com-
Our Internet Banking business continued to grow. munity programs—from combating hunger to helping
Our online customer base increased 35% and transaction at-risk youth to supporting education and health care.
PROVIDENT NEW YORK BANCORP 2006 Annual Report 11
Growing Value Through Wealth Management Services
With our trusted “I’ve been banking and investing with
Provident Bank for nearly 20 years. I like
expertise and that they’re a community bank and what-
professionalism, ever I need, they go out of their way to
help. They’ve helped me with my trust
we offer an array services, personal investment services, and
I recently moved assets to HVIA. I also
of services to help turn to Provident Bank for commercial
our customers grow banking and lending through my five
corporations—I do everything with them
and preserve their and my sons bank with them, too. They’ve
wealth, or pass on been very good to us.”
their assets. Joe DePaulis, Wealth Management and
Commercial Banking Client
Provident Bank Business Leaders Council Member
12
Services from a Trusted Local Resource
As a full-service community bank, we offer an array of wealth
management services for the individuals, businesses and institu-
tions in our communities—along with broad and deep expertise
to help our customers grow, preserve, and enhance long-term
asset value. At the end of fiscal 2006, total assets under man-
agement and/or administration were over $285 million.
To broaden our capabilities and extend our range of wealth
management services, in fiscal year 2006 we acquired Hudson
Valley Investment Advisors LLC (HVIA) of Goshen, New York,
with over $225 million in assets under management. The acqui- customers plan for the future, our Investment Management and
sition enables us to offer investment guidance and manage- Trust Department stayed the course in fiscal 2006, with $60 mil-
ment to an increasing number of customers while enhancing lion in assets under administration. We offer an array of services
our cross-selling opportunities. including employee benefit plans, IRAs, 401(k) plans, pension
For customers seeking in-depth fee-based investment funds and endowments.
advice and management, our acquisition of HVIA enables us to At Provident Bank, we work hard to attune our product
provide professional investment management with a proven and service offerings to the needs of our markets. With this in
track record to higher net worth individuals and organizations. mind, we offer lower asset requirements than many financial
HVIA will continue to be run with independent management institutions to provide our wealth management services to a
working exclusively for Provident Bank. This provides our cus- broader array of customers in our markets. Customers can find
tomers with the benefits of entrepreneurial management and all the services they need—including trust services—in one
unbiased, independent thinking, combined with all the advan- place. In addition, with our fee-based approach, customers can
tages of our company’s broader wealth management capabili- count on our objectivity and unbiased guidance.
ties. HVIA manages customized portfolios for pension funds, Beyond asset management, we offer specialized services
foundations, IRA rollovers and more—and brings us a new including estate and trust administration, fiduciary services
range of revenue generating opportunities while better serv- and not-for-profit services. We also reach out to individuals and
ing our clients. businesses in our communities through educational seminars
To help our customers pass on their assets, our Investment on a wide array of topics from tax strategies to retirement plan-
Management and Trust Department remains a trusted, reliable ning to employee benefits.
and knowledgeable resource in our communities. By helping
PROVIDENT NEW YORK BANCORP 2006 Annual Report 13
A Range of Convenient Investment and Insurance Services
Through sales and cross–
selling opportunities,
non-interest income
through IFMG rose 17%
in fiscal 2006.
“The people at Provident Bank and IFMG
are outstanding. Three years ago, we met
with them to look at our retirement and
personal investments. After analyzing our
situation, our IFMG representative showed
us ways to increase our return with less
risk. We’ve done very well since, substan-
tially better than in previous years. We’ve
developed a confidence and trust investing
through IFMG and have consolidated most
of our accounts with our representative.
Everything we’ve done through them has
been fantastic.”
John and Eileen Schunke,
Provident Bank Customers and IFMG Clients
This testimonial may not be representative of the experience of other IFMG Securities, Inc. clients and is not indicative
of future performance or success.
14
Our wealth management offerings include investment, insurance and brokerage services through our relationship with Independent
Financial Marketing Group (IFMG).* Experienced IFMG representatives serve customer needs at all of our 33 branches.
To help our customers grow and preserve their wealth, we offer With a comprehensive range of wealth management
investment, insurance and brokerage services through our rela- services, we provide a unique alternative to brokers and large
tionship with Independent Financial Marketing Group (IFMG). banks by offering all the services our customers need, right
Through IFMG, we offer a wide range of investment and insurance where they need them in their local community. Customers
products including mutual funds, fixed and variable annuities, know and trust our name, and we continually work to strengthen
life insurance and long-term care insurance.* As our third-party that trust through our personal service, professionalism and
broker/dealer investment provider, IFMG enables us to offer commitment to helping our customers succeed.
financial services including college, retirement and long-term
care planning, plus tax-advantaged and asset allocation strategies
throughout our branch network.
In fiscal 2006, we expanded the brokerage team. Experienced
IFMG representatives are conveniently located in our branch
offices, right where customers bank every day. Through our sales
efforts and cross-selling opportunities, non-interest income
through IFMG rose 17%.
*These products are not insured by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. They are not deposits or other obliga-
tions of, or guaranteed by Provident Bank and are subject to investment risk including possible loss of principal.
Annuities are offered through IFS Agencies, Inc. (IFSA), a licensed insurance agency. Securities are offered through IFMG Securities, Inc. (IFMGSI),
a registered broker/dealer, member NASD and SIPC. Neither IFMGSI nor IFSA, located at 100 Manhattanville Road, Purchase, NY 10577, 800.873.4374, are
affiliates of Provident Bank.
PROVIDENT NEW YORK BANCORP 2006 Annual Report 15
C O R P O R AT E I N F O R M AT I O N
BOARD OF DIRECTORS Pamela A. Bariou Linda K. LeMond
William F. Helmer Director of Information Technology Regional Manager, Southern Region
Chairman Carol Benoist Jeannie Lynch
Dennis L. Coyle Executive Administration Assistant Loan Origination Manager
Vice Chairman Barbara S. Boggan Donna M. Lyons
George Strayton Corporate Services Officer Deputy Auditor
President and Chief Executive Officer Suzanne Boyko John Malone
Judith Hershaft Commercial Loan Officer Business Development Manager
Thomas F. Jauntig, Jr. Steven T. Breen Constance M. Martin
Commercial Loan Officer Director of Marketing
Thomas G. Kahn
Katharine B. Brown Dominic P. Mazza
R. Michael Kennedy Associate General Counsel, Administrative Services Manager
Victoria Kossover Assistant Corporate Secretary Vincent G. Mazzillo
Donald T. McNelis Paul L. Cambreleng Purchasing Manager
Richard Nozell Community Business Loan Officer Thomas A. McGorry
Carl Rosenstock George C. Cardona Commercial Loan Head, Northern Region
William R. Sichol, Jr. Business Leaders Council Manager Irene McManus-Zeig
Burt Steinberg Steven R. Clenin Information Security Officer
Airmont Business Manager Mary Ann More
F. Gary Zeh Brenda G. Cox Assistant Director of Sales and Service Support
CORPORATE OFFICERS Community Relations Officer William C. Myers
E XECU TI V E O FFICERS Mary Curley Commercial Business Development Officer
Mortgage Loan Specialist John Nardi
George Strayton Vincent L. DeLucia Commercial Loan Officer
President and Chief Executive Officer
Commercial Loan Head, Southern Region Thomas M. Nash
Daniel G. Rothstein Anthony J. Fantino Corporate Services Officer
Executive Vice President, Chief Risk Officer,
Policy and Procedures Manager Richard S. Pashko
General Counsel and Corporate Secretary
Stephen G. Dormer Patricia K. Felipe Commercial Loan Team Leader,
Mortgage Loan Specialist Southern Region
Executive Vice President, Commercial Lending
and Strategic Planning Gerald D. Filandro Vasco Pereira
Compliance and Ethics Officer Loan Administration Manager
Richard O. Jones
Executive Vice President, Business Services Christopher J. Fiorillo John R. Retherford
Commercial Loan Officer Senior Auditor
Paul A. Maisch
Executive Vice President, Chief Financial Officer Carol A. Fitzgerald Richard E. Rooney
Community Business Loan Officer, Account Operations Manager
S ENIOR VICE P R ESIDENTS Southern Region Jennifer A. Rundle
Carl Capuano Katherine Fitzgerald Branch Administration, Northern Region
Commercial Lending Manager Community Business Loan Officer, Robin Seidman
John W. Carothers Northern Region Branch Administration, Southern Region
Chief Credit Officer George R. Gallant Barbara A. Shea
Stephen P. Cosgrove Credit Group Team Leader Director of Sales and Service Support
Trust Officer Ann M. Goas Jean Strella
John J. Fitzpatrick Benefits Manager Director of Human Resources
Director of Management Information Systems Jeffrey J. Golda Patricia Sullivan
Alfred E. Friedman Commercial Loan Officer Telecommunications Applications Manager
Chief Auditor Miranda Grimm William F. Vacca
William J. Lamadore Controller Regional Manager, Northern Region
Commercial Loan Team Leader, Southern Region Clarence G. Hartwick R. Brenda Wiener
VICE P R ESIDENTS Manager, Special Assets Commercial Loan Team Leader,
Angelo Agrafiotis Robert Jimenez Southern Region
Human Resources Manager Nanuet Business Manager Lawrence F. Zema
John R. Anderson James F. Lee Commercial Loan Officer
Loan Origination Manager Operational Risk Manager Giorgio Zeolla
Asset Liability Manager
16
ANNUAL MEETING
The Annual Meeting of Stockholders will be
held at the Holiday Inn, 3 Executive Boulevard,
Suffern, New York on February 15, 2007
at 11:00 a.m.
NEW YORK
STOCK LISTING
The Company’s common stock is listed on
the NASDAQ National Market under the
symbol “PBNY.”
SECURITIES COUNSEL
Luse Gorman Pomerenk & Schick, P.C.
5335 Wisconsin Avenue, N.W. Ulster County
Washington, D.C. 20015
Sullivan County
ANNUAL REPORT ON FORM 10-K
For more detailed financial information, refer
to the Form 10-K. A copy of the Company’s
Form 10-K for the fiscal year ended September Orange County
30, 2006 will be furnished without charge Putnam County
to stockholders upon written request to the
Manager of Stockholder Relations, Provident
New York Bancorp, 400 Rella Boulevard,
P.O. Box 600, Montebello, New York 10901 Rockland
or call 845.369.8040. County
OUR BRAND PROMISE
TRANSFER AGENT AND REGISTRAR Bergen Community: We are at the heart
Registrar & Transfer Company County
of the community and will work
10 Commerce Drive to meet the needs of every com-
Cranford, New Jersey 07016
munity member.
If you have any questions concerning your
stockholder account, call our transfer agent, Connection: We are connected
noted above, at 800.368.5948 ext. 2531. This
is the number to call if you require a change Strategically located to the community and our cus-
tomers through the strength of
of address, records or information about lost
certificates, or dividend checks. in six counties the relationships we build.
Consistency: We are committed to
DIVIDEND REINVESTMENT PLAN (DRIP) delivering an excellent experience
Provident New York Bancorp offers stock- to our customers, no matter where
designed by curran & connors, inc. / www.curran-connors.com
holders of PBNY common stock a Dividend they do business with us.
Reinvestment Plan (DRIP). To receive a pro-
Empowerment: We offer the full
spectus that describes the DRIP or to register
to participate, please contact our DRIP plan range of financial products and
administrator, Registrar and Transfer services to help customers realize
Company, at 800.368.5948, or online at their goals and dreams.
www.rtco.com.
Trust: We conduct ourselves
with the highest levels of honesty,
fairness and integrity to earn
the trust of our customers and
the community.
PROVIDENT NEW YORK BANCORP 2006 Annual Report
Provident Bank Corporate Office, Commercial Lending Group, Investment Management and
Trust Department, Provident Municipal Bank
400 Rella Boulevard, P.O. Box 600, Montebello, NY 10901
PHONE: 845.369.8040
FAX: 845.369.8255
CUSTOMER CARE CENTER: 845.369.8551
www.providentbanking.com
Hudson Valley Investment Advisors LLC
97 West Main Street
P.O. Box 268
Goshen, NY 10924
845.294.6127
Hardenburgh Abstract Company of Orange County, Inc.
12 Scotchtown Avenue
Goshen, NY 10924
845.294.5085
Member FDIC
LISTED ON UNDER THE SYMBOL “PBNY”
